Top 1000+ Solved Fundamentals of Economics and Management MCQ Questions Answer
Q. Which of the following function does money serve when used to purchase or sell different goods andservices?
a. Store of value
b. Medium of exchange
c. Standard of value
d. Display of power
Q. If RBI wants to decrease the money supply in order to check inflation it will
a. Sell bonds
b. Increase CRR
c. Hike bank rate
d. All or any of the above three
Q. If the country is passing through recession, the RBI would
a. Buy bonds
b. Reduce CRR
c. Ease out bank rate
d. All or any of the above three
Q. Manipulation in CRR enables the RBI to …….
a. Influence the lending ability of the commercial banks
b. Check unemployment growth
c. Check poverty
d. Increase GDP
Q. How does a commercial bank create money
a. By printing money
b. By lending a part of its deposits
c. By issuing ATM cards
d. Accepting deposits
Q. Which of these affects the demand for money?
a. Real income
b. Price level
c. Rate of interest
d. All the three
Q. If someone keeps some money for bad days, this demand for money is known by ……. motive of money
a. Speculative
b. Transaction
c. Precautionary
d. Store
Q. Which of these would lead to fall in demand for money?
a. Inflation
b. Increase in real income
c. Increase in real rate of interest
d. Increase in wealth
Q. EXIM Bank is authorized to raise loan from
a. RBI
b. Government of India
c. International market
d. Trading activities
Q. Which of these are not the duties of EXIM Bank?
a. Lending/Guarantee
b. Advisory
c. Promotional
d. Trading activities
Q. Which of these terms are/is appropriate for RBI?
a. Banker’s Bank
b. Banker’s to the Government
c. Both
d. None